It seems reasonable that if you go to all the trouble to make a will, that it would be enough. Turns out if you have an SMSF or in fact any type of superannuation, you need more in place than just a will.
Let’s be clear: a will does not include your superannuation benefits.
If you want your superannuation fund balance given to a certain person or people upon your death, you need a Binding Death Benefit Nomination (BDBN).
What is a BDBN?
This document is a legally-binding piece of paper that is signed and handed over to your super fund (including your SMSF), explaining to the trustee who they should pay your super to if you die.
If you DON’T sign this document, or fail to hand it over to your super fund, the super fund trustee hands out your money at their discretion.
They expire!
A valid, up-to-date BDBN binds your super trustee, but it is only valid for three years from the date it is signed by you, the super fund member. If it expires, then it is merely a suggestion of what you’d like done.
You can update your BDBN anytime, even if it hasn’t expired, which is good practice when your family circumstances change: kids marry idiots you don’t want to see a cent of your money, children arrive and grow up, people get sick and unable to manage their affairs, and death lurks. Nutshell? Things change, and your BDBN needs to continue to reflect this.
SMSF trust deeds are updated every three years anyway, and BDBNs apply indefinitely if the trust deed allows for this. It pays, no matter what, to update your BDBN every three years. Contact Vanessa Ash to update your estate plans.
Who can be a beneficiary in the BDBN?
The beneficiaries on a BDBN are limited to:
- your current spouse;
- your children;
- the executor of your will;
- any person in an interdependent relationship with you;
- being in a close personal relationship with you (like friends);
- lives with you, is provided with financial support, domestic support, or personal care (or you are by them).
To put your affairs in order, you should have a BDBN, a legal will, and Enduring Power of Attorney for medical and financial matters. Lawyer Vanessa Ash can help you with all of these legal matters, and will make sure your documents are kept up-to-date and in accordance with your wishes.
Write your own story. Call Vanessa Ash and Associates today.